(a)(1) In this section the following words have the meanings indicated.
(2) “Nonresident” has the meaning stated in § 10-101 of this article.
(3) “Resident” has the meaning stated in § 10-101 of this article.
(4) “Wages” has the meaning stated in § 10-905(f) of this article.
Income tax tables for individuals
(b)(1) The Comptroller shall prepare income tax tables to show the income tax for an individual.
(2) The Comptroller shall prepare tables based on Maryland taxable income that provide for:
(i) income intervals not exceeding $100 for Maryland taxable income; and
(ii) the State income tax due for each income interval.
(3) The State income tax for each interval is the whole dollar amount of tax for the income that is at the midway point of the interval.
Income tax withholding tables
(c)(1) The Comptroller shall prepare income tax withholding tables that show the income tax to be withheld from wages. The Comptroller may prepare separate tables for residents and nonresidents.
(2) The withholding tables shall provide for:
(i) wages for each withholding period allowable under § 10-909 of this article; and
(ii) the State income tax required to be withheld for a withholding period, after:
1. an adjustment is made for the exemptions for the period; and
2. if there is a separate table for nonresidents, an adjustment is made to allow the exhaustion of exemptions for a nonresident before any income tax is withheld.
(3) The total amounts required under the tables to be withheld during a taxable year shall approximate the total income tax due on the wages for the year, determined as provided in subsection (f) of this section.
Income tax percentage withholding schedule
(d)(1) The Comptroller may prepare income tax percentage withholding schedules that show the percent of income tax to be withheld from wages. The Comptroller may prepare separate schedules for residents and nonresidents.
(2) The optional percentage withholding schedules shall provide for:
(i) wages for each withholding period allowable under § 10-909 of this article; and
(ii) the percent of State income tax required to be withheld for the withholding period, after:
1. an adjustment is made for the exemptions for the period; and
2. if there is a separate schedule for nonresidents, an adjustment is made to allow the exhaustion of exemptions for a nonresident before any income tax is withheld.
(3) The total percentages required under the schedules to be withheld during a taxable year shall approximate the income tax due on the wages for the year, determined as provided in subsection (f) of this section.
Use of tables or schedules for withholdings
(e) At the option of the employer, withholdings may be made using either the withholding tables or the percentage withholding schedule.
Calculation of total income tax
(f) The total income tax required to be withheld on wages for purposes of the withholding tables and withholding schedules under this section shall be calculated without regard to the marginal State income tax rates less than 4.75% set forth under § 10-105(a)(1) (i) through (iii) and (2)(i) through (iii) of this article.
Credits
Added by Acts 1988, c. 2, § 1, eff. Jan. 1, 1989. Amended by Acts 1988, c. 110, § 1; Acts 1989, c. 394, § 1; Acts 1991, c. 40; Acts 1991, c. 487, § 3; Acts 2003, c. 203, § 24, eff. Jan. 1, 2004; Acts 2007, 1st Sp. Sess., c. 3, § 1, eff. Jan. 1, 2008.
Formerly Art. 81, §§ 289, 312.
MD Code, Tax - General, § 2-106, MD TAX GENERAL § 2-106
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
